- Nintendo now has significantly less cash available for use (about $7.8Bn now) and it has a a lot more inventories (stock) than it had in March.

- They are investing very heavily, and their operating expenses aren't falling in proportion to falling output/sales.

I've been predicting Nintendo won't reach Wii forcast since April or May and people not wanted to belive.

Final shipments won't reach 10 milions imho and January-March will be probably below PS2 levels after Christmas season overshipping.

They had a net loss of 70000 Million Yen, and had foreign exchange losses of 52000 Million Yen - so its a massive contributor.

But, they had roughly the same amount of foreign exchange losses a year ago and didn't have this kind of loss.....

Net loss is actually $0.922B, but anyway, I actually read somebody in GAF who calculated the exchage rate to be more like 85% of the losses, but I am not certain how he had arrived at the number he got. Maybe he read the data more closely, but then again maybe he misread/miscalculated.

Its about 75%.

jesus, i knew it was not the sales exclusively to blame, but that's pathetic

So can people predict the next results Nintendo posts? Predict the next 6 months please!

Wow, they are either being extremely conservative or they expect DS sales to grind to a halt.  The last five years they have sold more than 6 million in the third quarter alone (and were only 310k away in 2005).  I guess they aren't going to do any price drops lest it hurt 3DS sales. Not sure if fewer DS sales will translate into higher 3DS sales, but I guess they need to do something to hit 16 million.  I'm just not sure it will happen.  They will need Q3 and Q4 sales to come close to the DS in 2006/07 (about 500k less).  The DS had sold over 10 million in the first half of that year compared to the ~3 million for the 3DS.

I guess the PS2 will remain king.

Well first they will not make their 16M projection for the 3DS unless another price cut is in the cards

Second, if people actually read the press report that nintendo sent out, they are projecting a value of 78 Yen/Dollar for the next six months, the current rate is at teh mid 75's, they have a average of 109 Euro/Yen but its currently at 105, so more exchange related losses

Third, they north american business is deteriorating at a alamaring clip, they are being burnt by the X360 and PS3 as multiplat titles are going to those systems.  They only shipped 520k units from april to sept.

Fourth still a relative weak holiday lineup for the Wii, they are trying to midigate software losses by bundling their top tier games with Wii and 3DS

Fifth, Vita release in Japan eating into 3DS sales

Sixth WiiU final form wont be shown until E3 2012, so you looking at three quarters of subpar performance from two declining systems and one in trouble

so on and so on

Everyone paniking I wouldn't be too worried. Yes almost a billion USD is a tremendous loss and unacceptable but Sony lost a similar amount when it launched PS3. Not that we should be giving Nintendo credit for screwing up as bad as Sony did but they aren't in as bad as a position as Sony was. In the first whole year PS3 had been on the market Sony registered a 2.16 Billion dollar loss and in 2008 another 1.16 Billion USD loss. We all know Sony went on to return to profitability in 2010.

Now of course Sony could take those kinds of losses to a degree, can Nintendo? Yes Nintendo can in fact according to IGN Nintendo says they expect to have an operating loss of only 200-million at the end of the year. I'm not sure how that is possible considering they lost almost a billion dollars this quarter but 200-million for the year is not bad at all.

I expect the WiiU to bomb initially as well unless Nintendo prices the device at 250$ price range. It will likely fail to have the immediate success Wii did even if successful.

A huge reason for all these losses is the Yen is worth so freaking much against the US dollar right now. I wonder how they can deal with that?